SEMTECH CORP
For the period ended Apr 27, 2025. Filed May 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 27, 2025 · Filed May 29, 2025
SMTC$103.21+12.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-10-27; filed 2024-12-03.
0000088941-24-000131
ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-04-27; filed 2025-05-29.
0000088941-25-000101
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 111 current paragraphs.
62 unchanged; 38 reworded; 10 added; 33 removed; 10 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Revolving Credit Facility
Current report
On April 24, 2025, we entered into the fourth amendment (the "Fourth Amendment") to the Credit Agreement (as defined below). Pursuant to the Fourth Amendment, the Company's Credit Agreement was amended, in order to, among other things, increase the total available borrowing capacity under the revolving credit facility under the Credit Agreement (the "Revolving Credit Facility") by $117.5 million increasing the total facility size to $455.0 million. Other than the foregoing, the material terms of the Credit Agreement remain unchanged. For additional information, see Note 8, Long-Term Debt to our interim unaudited condensed consolidated financial statements.
Current report
As disclosed in Part I, Item 1A: Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 26, 2025, the Company’s business is subject to risks related to, among other factors, tariffs and other trade barriers put in the place by government authorities. The imposition of tariffs and other trade barriers by government authorities on imported goods, including raw materials and components essential to our manufacturing processes, could have significant adverse effects on our business, financial condition, and results of operations. Beginning in the first quarter of fiscal year 2026, the U.S. government imposed additional tariffs on goods imported into the U.S. from numerous countries ("U.S. Tariffs") and multiple countries and groups of countries imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. Various modifications and delays to the U.S. Tariffs have been announced and further changes are expected to be made in the future, which may include additional sector-based tariffs or other measures. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. Tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. The Company continues to monitor and analyze the impacts of these measures and actions that can be taken to moderate and/or minimize their effects.
Current report
Selling, general and administrative expenses decreased $5.8 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025 primarily as a result of an $8.1 million net decrease in staffing-related costs driven by lower share-based compensation caused by the impact of the lower closing stock price as of period-end on the cash-settled awards, offset by a $1.9 million increase in consulting expenses and a $0.7 million increase in travel.
Current report
Intangible amortization was $0.1 million and $0.3 million for the first quarters of fiscal years 2026 and 2025, respectively. The amortization of acquired technology intangible assets is reflected in cost of sales.
Current report
Interest Expense
Current report
On April 24, 2025, we entered into the Fourth Amendment, in order to, among other things, increase the total available borrowing capacity under the revolving credit facility by $117.5 million, increasing the total facility size to $455.0 million. The increase partially replaces borrowing capacity that matured on November 7, 2024. Other than the foregoing, the material terms of the Credit Agreement remain unchanged.
Current report
Portfolio Rationalization
Current report
We are continuing to conduct a portfolio rationalization review, which has included identifying non-core assets in an effort to align our portfolio with our strategic vision and preferred margin profile. As part of the portfolio rationalization review, we are reviewing potential strategic alternatives for certain of our non-core assets. No decision has been made regarding any strategic alternative or any particular asset, and there is no assurance that the exploration of strategic alternatives will result in any transactions, nor any specified timeline.
Current report
In the first three months of fiscal year 2026, we paid $8.9 million for employee share-based compensation payroll taxes, compared to payments of $2.4 million for employee share-based compensation payroll taxes in the first three months of fiscal year 2025.
Removed paragraphs (33)
Previous report
Convertible Note Exchange
Previous report
Our regional mix of loss before taxes and equity method (loss) income was as follows:
Previous report
Domestic performance includes higher levels of share-based compensation compared to foreign operations.
Previous report
In the third quarter of fiscal year 2025, gross profit increased $28.0 million to $121.0 million from $93.0 million in the third quarter of fiscal year 2024. This increase was primarily driven by a $20.8 million increase from Signal Integrity, which experienced higher sales led by data center and 10G PON due to stronger demand, a $11.9 million increase from Analog Mixed Signal and Wireless, which experienced higher sales led by LoRa-enabled product due to stronger demand, a $7.7 million decrease in the amortization of acquired technology intangible assets related to the acquisition of all of the issued and outstanding common shares of Sierra Wireless, Inc. on January 12, 2023 (the "Sierra Wireless Acquisition") due to impairments in the fourth quarter of fiscal year 2024, partially offset by a $8.6 million decrease from IoT Systems and Connectivity due to royalty expense recoveries in the third quarter of fiscal year 2024.
Previous report
Selling, general and administrative expenses increased $12.1 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 primarily as a result of a $13.9 million net increase in staffing-related costs, which reflects higher share-based and supplemental compensation, a $0.8 million increase in litigation expenses, and a $0.5 million increase in depreciation, partially offset by a decrease of $2.7 million in transaction and integration costs primarily related to the Sierra Wireless Acquisition.
Previous report
Intangible amortization decreased by $4.7 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 due to impairment of intangible assets acquired in the Sierra Wireless Acquisition related to customer relationships and trade name in the fourth quarter of fiscal year 2024. The amortization of acquired technology intangible assets is reflected in cost of sales.
Previous report
Goodwill Impairment
Previous report
There was no goodwill impairment in the third quarter of fiscal year 2025 compared to $2.3 million of goodwill impairment in the third quarter of fiscal year 2024 due to valuation adjustments of goodwill related to the Sierra Wireless Acquisition. See Note 8, Goodwill and Intangible Assets, to our interim unaudited condensed consolidated financial statements for additional information.
Previous report
We receive a tax benefit from a tax holiday that was granted in Switzerland. The tax holiday commenced on January 30, 2017, and was effective for five years (the "Initial Term"). Since we met certain staffing targets, the holiday has been extended for an additional five years commencing on January 31, 2022. The maximum benefit under this tax holiday is CHF 500.0 million of cumulative after tax profit, which equates to a maximum potential tax savings of CHF 44.0 million. The extended term of the tax holiday is effective until fiscal year 2027. However, Switzerland implemented the Organization of Economic Co-operation and Development's ("OECD") global minimum tax ("Pillar Two") rules effective from January 1, 2024. Based on the administrative guidance issued by OECD in December 2023, we have determined that Pillar Two rules are applicable in the current fiscal year; therefore, we do not benefit from the tax holiday.
Previous report
Net Sales
Previous report
Net sales for the first nine months of fiscal year 2025 were $658.3 million, a decrease of 2.6% compared to $675.8 million for the first nine months of fiscal year 2024 primarily driven by lower net sales from our industrial end market related to decreased sales volume and pricing pressures, offset by higher demand. Comparing the same periods, our infrastructure and high-end consumer end markets had stronger demand and resulting net sales. Net sales from our infrastructure end market increased $50.2 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024, primarily driven by a $34.2 million increase in data center sales and a $20.9 million increase in telecommunications sales, partially offset by a $5.0 million decrease in TVS infrastructure product sales. Net sales from our high-end consumer end market increased $18.5 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024, primarily driven by a $19.2 million increase in TVS consumer product sales and a $4.7 million increase in proximity sensing sales, partially offset by a $4.2 million decrease in LoRa-enabled sales in consumer applications. Net sales from our industrial end market decreased $86.2 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024, primarily driven by a $110.9 million decrease in IoT Hardware sales and a $3.9 million decrease in TVS industrial product sales, partially offset by a $30.2 million increase in LoRa-enabled sales in industrial applications.
Previous report
Net sales in the first nine months of fiscal year 2025, compared to the first nine months of fiscal year 2024, were impacted by softer demand in the IoT Systems and Connectivity reportable segment, which contributed to lower sales volume and pricing pressures, but benefited from stronger demand in the Signal Integrity and Analog Mixed Signal and Wireless reportable segments. Net sales from Signal Integrity increased $55.0 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024, primarily driven by a $34.2 million increase in data center sales and a $20.9 million increase in telecommunications sales. Net sales from Analog Mixed Signal and Wireless increased $37.6 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024, primarily driven by a $26.0 million increase in LoRa-enabled sales, a $10.2 million increase in TVS product sales, and a $4.7 million increase in proximity sensing sales. Net sales from IoT Systems and Connectivity decreased $110.2 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024, primarily driven by a $110.9 million decrease in IoT Hardware sales, partially offset by a $0.6 million increase in managed connectivity sales.
Previous report
Gross Profit
Previous report
Our gross margin was 49.5% in the first nine months of fiscal year 2025, compared to 43.9% inthe first nine months of fiscal year 2024. Gross margin from Signal Integrity was 61.6% inthe first nine months of fiscal year 2025, compared to 57.0% inthe first nine months of fiscal year 2024, primarily due to higher volume reducing overhead. Gross margin from Analog Mixed Signal and Wireless was 56.2% inthe first nine months of fiscal year 2025, compared to 57.6% inthe first nine months of fiscal year 2024, primarily due to higher overhead and price erosion. Gross margin from IoT Systems and Connectivity was 38.0% in the first nine months of fiscal year 2025, compared to 42.0% in the first nine months of fiscal year 2024, primarily driven by softer demand and pricing pressures.
Previous report
Operating Expenses, net
Previous report
Product Development and Engineering Expenses
Previous report
Product development and engineering expenses decreased $20.7 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 primarily as a result of a $10.0 million decrease in new product introduction expenses, a $9.5 million net decrease in staffing-related costs due to lower headcount and a $2.3 million decrease in facilities expenses, partially offset by a $1.6 million reduction in tax credits.
Previous report
Selling, General and Administrative Expenses
Previous report
Selling, general and administrative expenses increased $2.8 million in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 primarily as a result of a $12.7 million net increase in staffing related costs, which reflects higher share-based and other supplemental compensation offset by lower headcount from restructuring, a $3.0 million increase in consulting expenses, a $2.0 million increase in depreciation and a $1.2 million increase in bad debt expense, partially offset by a $13.7 million decrease in transaction and integration expenses primarily related to the Sierra Wireless Acquisition and a $1.0 million reduction in travel expenses.
Previous report
Intangible Amortization
Previous report
Intangible amortization decreased by $13.9 million for the first nine months of fiscal year 2025 compared to the same period in fiscal year 2024 due to impairment of intangible assets acquired in the Sierra Wireless Acquisition related to customer relationships and trade name in the fourth quarter of fiscal year 2024. The amortization of acquired technology intangible assets is reflected in cost of sales.
Previous report
Restructuring
Previous report
Goodwill Impairment
Previous report
There was no goodwill impairment for the first nine months of fiscal year 2025 compared to $281.8 million of goodwill impairment for the same period in fiscal year 2024 due to valuation adjustments of goodwill related to the Sierra Wireless Acquisition. See Note 8, Goodwill and Intangible Assets, to our interim unaudited condensed consolidated financial statements for additional information.
Previous report
Interest expense, including amortization and write-off of deferred financing costs, remained relatively consistent at $72.6 million and $73.0 million for the first nine months of fiscal years 2025 and 2024, respectively.
Previous report
Loss on Extinguishment of Debt
Previous report
In addition to the write-off of $5.5 million of deferred financing costs as a result of approximately $188.1 million of 2028 Notes extinguished in exchange for common stock in the first nine months of fiscal year 2025, which was recorded in "Interest expense" in the Statements of Operations, we recognized a loss on extinguishment of debt equal to the difference between the fair value of our common stock delivered to certain holders of the 2028 Notes and the carrying value of the outstanding debt, accrued interest and third-party fees related to the Exchange Agreements. In the first nine months of fiscal year 2025, in connection with the exchange transactions, we recognized $144.7 million of loss included in "Loss on extinguishment of debt" in the Statements of Operations.
Previous report
Provision for Income Taxes
Previous report
During the second quarter of fiscal year 2024, we recorded a valuation allowance against our U.S. deferred tax assets of approximately $52.8 million. We are required to assess whether a valuation allowance should be recorded against our deferred tax assets ("DTAs") based on the consideration of all available evidence, using a "more likely than not" realization standard. The four sources of taxable income that must be considered in determining whether DTAs will be realized are: (1) future reversals of existing taxable temporary differences (i.e. offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards.
Previous report
After a review of the four sources of taxable income described above and in view of our three-year cumulative loss, we were not able to conclude that it is more likely than not that our DTAs will be realized. As a result, we recorded an additional valuation allowance on our DTAs, with a corresponding charge to our income tax provision, of approximately $52.8 million during the second quarter of fiscal year 2024.
Previous report
As of October 27, 2024, we were in compliance with the financial covenants in the Credit Agreement (as defined below). Based on our current amount of debt outstanding and financial projections, management believes we will maintain compliance with our financial covenants and that our existing cash, projected operating cash flows and available borrowing capacity under the Revolving Credit Facility are adequate to meet our operating needs, liabilities and commitments over the next twelve months from the issuance of the accompanying interim unaudited condensed consolidated financial statements.
Previous report
On July 11, 2024 and July 15, 2024, we entered into the Exchange Agreements with certain holders of the 2028 Notes. Pursuant to the Exchange Agreements, certain holders of the 2028 Notes exchanged with us approximately $188.1 million in aggregate principal amount of 2028 Notes held by them for an aggregate of 10,378,431 shares of our common stock, which number of shares was determined over an averaging period that commenced on July 12, 2024. We accounted for these exchange transactions as a partial debt extinguishment and recognized a loss on extinguishment of debt equal to the difference between the fair value of our common stock delivered to certain holders of the 2028 Notes and the carrying value of the outstanding debt, accrued interest and third-party fees related to the Exchange Agreements. In the nine months ended October 27, 2024, in connection with the exchange transactions, we recognized $144.7 million of loss included in "Loss on extinguishment of debt" in the Statements of Operations and $5.5 million of loss resulting from the write-off of deferred financing costs included in "Interest expense" in the Statements of Operations.
Previous report
In the first nine months of fiscal year 2025, we paid $7.3 million for employee share-based compensation payroll taxes and received proceeds of $1.2 million from the exercise of stock options. In the first nine months of fiscal year 2024, we paid $5.5 million for employee share-based compensation payroll taxes. We do not directly control the timing of the exercise of stock options. Such exercises are independent decisions made by grantees and are influenced most directly by the stock price and the expiration dates of stock option awards. Such proceeds are difficult to forecast, resulting from several factors that are outside our control. We believe that such proceeds will remain a nominal source of cash in the future.
Reworded paragraphs (38)
Previous wording
Semtech Corporation (together with its consolidated subsidiaries, the "Company," "we," "our" or "us") is a high-performance, semiconductor, Internet of Things ("IoT") systems and cloud connectivity service provider. We have three operating segments—Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity—that represent three separate reportable segments. Prior to the fourth quarter of fiscal year 2024, the Company had four operating segments—Signal Integrity, Advanced Protection and Sensing, IoT Systems and IoT Connected Services. In the fourth quarter of fiscal year 2024, as a result of organizational restructuring, the wireless business, which was previously included in the former IoT Systems operating segment, and the software defined video over ethernet business, which was previously included in the Signal Integrity operating segment, were moved into the Analog Mixed Signal and Wireless operating segment, formerly the Advanced Protection and Sensing operating segment, which also includes the proximity sensing, power and protection businesses. In the first quarter of fiscal year 2025, as a result of organizational restructuring, the Company combined the IoT Systems operating segment and the IoT Connected Services operating segment into the newly formed IoT Systems and Connectivity operating segment. As a result of the reorganization, the Company has three reportable segments. All prior year information in the tables below has been revised retrospectively to reflect the change to the Company's reportable segments. See Part I, Item 1, Note 15, Segment Information, to our interim unaudited condensed consolidated financial statements for additional information on our reportable segments.
Current wording
Semtech Corporation (together with its consolidated subsidiaries, the "Company," "we," "our" or "us") is a leading provider of high-performance semiconductor, Internet of Things ("IoT") systems and cloud connectivity service solutions and was incorporated in Delaware in 1960. We have three operating segments—Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity—that represent three separate reportable segments. See Part I, Item 1, Note 14, Segment Information, to our interim unaudited condensed consolidated financial statements for additional information on our reportable segments.
Previous wording
IoT Systems and Connectivity. We design, develop, operate and market a comprehensive product portfolio of IoT solutions that enable businesses to connect and manage their devices, collect and analyze data, and improve decision-making. The portfolio includes a wide range of modules, gateways, routers, and connected services that are designed to meet the specific needs of different industries and applications. Our modules are available in a variety of form factors and connectivity options, including LTE-M, NB-IoT and 5G, and can be integrated into an array of devices and systems. Our gateways and routers are designed to provide reliable and secure connectivity for IoT devices, while our connected services enable businesses to manage devices and connectivity so businesses can navigate the complex IoT landscape and realize the full potential of connected devices. We also design, develop, operate and market a portfolio of connected services used in a wide variety of industrial, medical and communications applications. Our connected services include wireless connectivity and cloud-based services for customers to deploy, connect, and operate their end applications. Our services have been purpose-built for IoT applications and include features such as SIM and subscription management, device and data management, geolocation support, as well as reporting and alerting that can be configured or tailored to a variety of IoT use cases.
Current wording
IoT Systems and Connectivity. We design, develop, operate and market a comprehensive product portfolio of IoT solutions that enable businesses to connect and manage their devices, collect and analyze data, and improve decision-making. The portfolio includes a wide range of modules, gateways, routers (together "IoT Hardware"), and connected services that are designed to meet the specific needs of different industries and applications. Our modules are available in a variety of form factors and connectivity options, including LTE-M, NB-IoT and 5G, and can be integrated into an array of devices and systems. Our gateways and routers are designed to provide reliable and secure connectivity for IoT devices, while our connected services enable businesses to manage devices and connectivity so businesses can navigate the complex IoT landscape and realize the full potential of connected devices. We also design, develop, operate and market a portfolio of connected services used in a wide variety of industrial, medical and communications applications. Our connected services include wireless connectivity and cloud-based services for customers to deploy, connect, and operate their end applications. Our services have been purpose-built for IoT applications and include features such as SIM and subscription management, device and data management, geolocation support, as well as reporting and alerting that can be configured or tailored to a variety of IoT use cases.
Previous wording
We design, develop, manufacture and market a wide range of products for commercial applications, the majority of which are sold into the infrastructure, high-end consumer and industrial end markets.
Current wording
We design, develop, manufacture and market a diverse portfolio of products for commercial applications, addressing the global infrastructure, high-end consumer and industrial end markets.
Previous wording
Infrastructure: data centers, PON, base stations, optical networks, servers, carrier networks, switches and routers, cable modems, wireless local area network and other communication infrastructure equipment.
Current wording
Infrastructure: data centers, PON, base stations, optical networks, servers, carrier networks, switches and routers, cable modems, wireless local area network ("LAN") and other communication infrastructure equipment. This market has expanded to support artificial intelligence-driven applications and general compute data center applications.
Previous wording
High-End Consumer: smartphones, tablets, wearables, desktops, notebooks, and other handheld products, wireless charging, set-top boxes, digital televisions, monitors and displays, digital video recorders and other consumer equipment.
Current wording
High-End Consumer: smartphones, tablets, smart glasses, wearables, desktops, notebooks, wireless charging, set-top boxes, digital televisions, monitors and displays, digital video recorders and other consumer equipment.
Previous wording
Industrial: IoT applications, analog and digital video broadcast equipment, video-over-IP solutions, automated meter reading, smart grid, wireless charging, medical, security systems, automotive, industrial and home automation and other industrial equipment.
Current wording
Industrial: IoT applications such as connected spaces (smart cities, buildings, factories, facilities and commercial buildings), smart utilities (electricity, water, gas and smart grid), wireless charging, medical, security systems, automotive, industrial and home automation, supply chain management, asset tracking and logistics, analog and digital video broadcast equipment, video-over-IP solutions and other industrial equipment.
Previous wording
Our end customers for our silicon solutions are primarily original equipment manufacturers that produce and sell technology solutions. Our IoT module, router, gateway (together "IoT Hardware") and managed connectivity solutions ship to IoT device makers and enterprises to provide IoT connectivity to end devices.
Current wording
Our end customers for our silicon solutions are primarily original equipment manufacturers ("OEMs") that produce and sell technology solutions. Our IoT module, router, gateway and managed connectivity solutions ship to IoT device makers, enterprises and solution providers to provide IoT connectivity to end devices.
Previous wording
Most of our sales to customers are made on the basis of individual customer purchase orders and many customers include cancellation provisions in their purchase orders. We rely on orders received and shipped within the same quarter for a meaningful portion of our sales. Net sales made through independent distributors during the third quarters of fiscal years 2025 and 2024 were each 72% of net sales and the remainder were made directly to customers.
Current wording
Most of our sales to customers are made on the basis of individual customer purchase orders and many customers include cancellation provisions in their purchase orders. We rely on orders received and shipped within the same quarter for a meaningful portion of our sales. Net sales made through independent distributors during the first quarters of fiscal years 2026 and 2025 were 71% and 73%, respectively, of net sales and the remainder were made directly to customers.
Previous wording
We are a global business with customers and suppliers around the world. A significant amount of our third-party subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located outside the United States, including China and Taiwan. A significant amount of our assembly and test operations are conducted by third-party contractors located outside the United States, including China, Malaysia, Mexico, Taiwan and Vietnam. Net sales outside the United States constituted
Current wording
We are a global business with customers and suppliers around the world. A significant amount of our third-party subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located outside the United States, including China, Japan, Taiwan and Vietnam. A significant amount of our assembly and test operations are conducted by third-party contractors located outside the United States, including China, Malaysia, Taiwan and Vietnam. Net sales outside the United States constituted 82% and 79% during the first quarters of fiscal years 2026 and 2025, respectively. Approximately 63% and 64% of our net sales during the first quarters of fiscal years 2026 and 2025, respectively, were to customers located in the Asia-Pacific region. We are subject to export restrictions and trade regulations, which have limited our ability to sell to certain customers in certain regions. In addition, changes in tariffs or the imposition of retaliatory tariffs may impact our net sales, gross profit, and gross margin if we are unable to pass higher costs on to our customers.
Previous wording
We use several metrics as indicators of future potential growth. The indicators that we believe best correlate to potential future sales growth are design wins and new product releases. There are many factors that may cause a design win or new product release to not result in sales, including a customer's decision not to go to system production, a change in a customer's perspective regarding a product's value or a customer's product failing in the end market. As a result, although a design win or new product introduction is an important step towards generating future sales, it does not necessarily result in us being awarded business or receiving a purchase commitment.
Current wording
We use several metrics as indicators of future potential growth. The indicators that we believe best correlate to potential future sales growth are design wins and new product releases. There are many factors that may cause a design win or new product release to not result in sales, including a customer decision not to go to system production, a change in a customer’s perspective regarding a product’s value or a customer’s product failing in the end market. As a result, although a design win or new product release is an important step towards generating future sales, it does not necessarily result in us being awarded business or receiving a purchase commitment.
Previous wording
Inflationary factors have in the past affected, and could continue to affect, our performance if we are unable to pass higher costs on to our customers.
Current wording
Further, inflationary factors have in the past affected, and could continue to affect, our future performance if we are unable to pass higher costs on to our customers.
Previous wording
Net sales in the third quarter of fiscal year 2025 were $236.8 million, an increase of 17.9% compared to $200.9 million in the third quarter of fiscal year 2024, which was primarily driven by higher net sales from our infrastructure and industrial end markets due to stronger demand and increased sales volume. Net sales from our infrastructure end market increased $22.6 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024, primarily driven by a $18.8 million increase in data center sales and a $4.5 million increase in telecommunications sales, partially offset by a $0.7 million decrease in TVS infrastructure and other product sales. Net sales from our industrial end market increased $10.9 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024, primarily driven by a $14.8 million increase in LoRa-enabled sales in industrial applications, partially offset by a $1.4 million decrease in IoT Hardware sales. Net sales from our high-end consumer end market increased $2.5 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024, primarily driven by an increase in TVS consumer product sales.
Current wording
Net sales in the first quarter of fiscal year 2026 were $251.1 million, an increase of 21.8% compared to $206.1 million in the first quarter of fiscal year 2025, which was primarily driven by higher net sales from our industrial and infrastructure end markets due to stronger demand and increased sales volume. Net sales from our industrial end market increased $27.2 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025, primarily driven by an approximately $17.4 million increase in LoRa-enabled sales in industrial applications and approximately $15.2 million increase in IoT Hardware sales, partially offset by an approximately $4.4 million decrease in other wireless and sensing products sales. Net sales from our infrastructure end market increased $16.9 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025, primarily driven by an approximately $30.4 million increase in data center sales, partially offset by an approximately $14.0 million decrease in telecommunications sales. Net sales from our high-end consumer end market increased $0.9 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025, primarily driven by an increase in proximity sensing product sales.
Previous wording
Net sales in the third quarter of fiscal year 2025, as compared to the third quarter of fiscal year 2024, benefited from stronger demand and increased sales volumes in the Signal Integrity and Analog Mixed Signal and Wireless reportable segments. Net sales from Signal Integrity increased $24.3 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024, primarily driven by a $18.8 million increase in data center sales, a $4.5 million increase in telecommunications sales and a $1.2 million increase in broadcast sales. Net sales from Analog Mixed Signal and Wireless increased $12.6 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024, primarily driven by a $13.5 million increase in LoRa-enabled product sales, partially offset by a $1.0 million decrease in Pro-AV product sales. Net sales from IoT Systems and Connectivity decreased $1.0 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 primarily driven by a $1.4 million decrease in IoT Hardware sales.
Current wording
Net sales in the first quarter of fiscal year 2026, as compared to the first quarter of fiscal year 2025, benefited from stronger demand and increased sales volumes in all the reportable segments. Net sales from Analog Mixed Signal and Wireless increased $15.3 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025, primarily driven by an approximately $17.5 million increase in LoRa-enabled product sales and an approximately $1.7 million increase in total TVS product sales, partially offset by an approximately $4.4 million decrease in other wireless and sensing product sales. Net sales from Signal Integrity increased $15.2 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025, primarily driven by an approximately $30.4 million increase in data center sales, partially offset by an approximately $14.0 million decrease in telecommunications sales. Net sales from IoT Systems and Connectivity increased $14.5 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025, primarily driven by an increase in IoT Hardware sales.
Previous wording
In the first nine months of fiscal year 2025, gross profit increased $29.4 million to $326.0 million from $296.6 million in the first nine months of fiscal year 2024. This increase was primarily driven by a $40.2 million increase from Signal Integrity, which experienced higher sales led by data center and 10G PON due to stronger demand, a $24.6 million decrease in the amortization of acquired technology intangible assets related to the Sierra Wireless Acquisition due to impairments in the fourth quarter of fiscal year 2024, a $18.4 million increase from Analog Mixed Signal and Wireless, which experienced higher sales due to stronger demand, particularly with TVS consumer products, a $3.3 million decrease for amortization of inventory step-up due to the finalization of measurement period adjustments in the second quarter of fiscal year 2024 related to the Sierra Wireless Acquisition, partially offset by a $55.6 million decrease from IoT Systems and Connectivity due to lower IoT Hardware sales primarily driven by soft demand causing decreased sales volume and pricing pressures.
Current wording
In the first quarter of fiscal year 2026, gross profit increased $31.7 million to $131.3 million from $99.6 million in the first quarter of fiscal year 2025. This increase was primarily driven by a $15.7 million increase from Analog Mixed Signal and Wireless, which experienced higher sales led by LoRa-enabled products due to stronger demand, a $13.4 million increase from Signal Integrity, which experienced higher sales led by data center sales due to stronger demand, partially offset by lower telecommunications sales, and a $2.8 million increase from IoT Systems and Connectivity, primarily driven by higher IoT Hardware sales due to stronger demand.
Previous wording
Our gross margin was 51.1% in the third quarter of fiscal year 2025, compared to 46.3% inthe third quarter of fiscal year 2024. Gross margin for our Signal Integrity segment was 63.1% inthe third quarter of fiscal year 2025, compared to 51.6% inthe third quarter of fiscal year 2024, primarily due to higher volume reducing overhead. Gross margin for our Analog Mixed Signal and Wireless segmentwas 57.2% inthe third quarter of fiscal year 2025, compared to 50.5% inthe third quarter of fiscal year 2024, primarily due to higher overhead absorption and favorable product mix. Gross margin for our IoT Systems and Connectivity segment was 41.0% inthe third quarter of fiscal year 2025, compared to 50.9% inthe third quarter of fiscal year 2024, primarily due to royalty expense recoveries in the third quarter of fiscal year 2024.
Current wording
Our gross margin was 52.3% in the first quarter of fiscal year 2026, compared to 48.3% in the first quarter of fiscal year 2025. Gross margin for our Signal Integrity segment was 65.5% in the first quarter of fiscal year 2026, compared to 59.6% in the first quarter of fiscal year 2025, primarily due to higher volume and favorable product mix. Gross margin for our Analog Mixed Signal and Wireless segment was 62.3% in the first quarter of fiscal year 2026, compared to 54.0% in the first quarter of fiscal year 2025, primarily due to higher volume and favorable product mix. Gross margin for our IoT Systems and Connectivity segment was 34.4% in the first quarter of fiscal year 2026, compared to 37.4% in the first quarter of fiscal year 2025, primarily due to unfavorable product mix.
Previous wording
Product development and engineering expenses decreased $4.3 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 primarily as a result of a $6.3 million decrease in new product introduction expenses and a $0.5 million decrease in facilities expenses, partially offset by a $2.5 million net increase in staffing-related costs, which reflects higher supplemental compensation. The levels of product development and engineering expenses reported in a fiscal period can be significantly impacted, and therefore experience period over period volatility, by the number of new product tape-outs and by the timing of recoveries from engineering services, which are typically recorded as a reduction to product development and engineering expense.
Current wording
Product development and engineering expenses increased $5.9 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025 primarily as a result of a $4.5 million net increase in staffing-related costs from higher supplemental compensation and a $0.9 million increase in new product introduction expenses. The levels of product development and engineering expenses reported in a fiscal period can be significantly impacted, and therefore experience period over period volatility, by the number of new product tape-outs and by the timing of recoveries from engineering services, which are typically recorded as a reduction to product development and engineering expense.
Previous wording
Restructuring decreased by $3.0 million in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 due to the structural reorganization actions primarily in the prior year period to reduce our workforce as a result of cost-saving measures and internal resource alignment including from the realization of synergies of the Sierra Wireless Acquisition.
Current wording
Restructuring expenses decreased by $1.1 million in the first quarter of fiscal year 2026 compared to the first quarter of fiscal year 2025 due to the structural reorganization actions primarily in the prior year period to reduce our workforce as a result of cost-saving measures and internal resource alignment including from the realization of synergies of the Sierra Wireless Acquisition.
Previous wording
Interest expense, including amortization and a write-off of deferred financing costs, was $20.8 million and $28.3 million for the third quarters of fiscal years 2025 and 2024, respectively. The decrease was primarily due to interest savings as a result of approximately $188.1 million of 2028 Notes extinguished in exchange for common stock in the second quarter of fiscal year 2025.
Current wording
Interest expense, including amortization and a write-off of deferred financing costs, was $6.6 million and $23.2 million for the first quarters of fiscal years 2026 and 2025, respectively. The decrease was primarily due to interest savings as a result of approximately $188.1 million of 2028 Notes extinguished in exchange for common stock, and debt repayment of $215.0 million on the Revolving Credit Facility and $441.4 million on the Term Loans (as defined below) in the second and fourth quarters of fiscal year 2025, respectively.
Previous wording
During the third quarter of fiscal year 2025, we did not record any investment impairments and credit loss reserves. During the third quarter of fiscal year 2024, investment impairments and credit loss reserves, net totaled a loss of $2.0 million due to adjustments to our credit loss reserve for our available-for-sale debt securities.
Current wording
During the first quarter of fiscal year 2026, we did not record any investment impairments and credit loss reserves. During the first quarter of fiscal year 2025, investment impairments and credit loss reserves, net totaled a loss of $1.1 million due to an other-than-temporary impairment on one of our non-marketable equity investments.
Previous wording
We recorded income tax expense of $4.0 million in the third quarter of fiscal year 2025, compared to income tax benefit of $0.3 million in the third quarter of fiscal year 2024. The change in our tax provision for the three months ended October 27, 2024, compared to the three months ended October 29, 2023 was primarily due to a regional mix of income, nondeductible loss on extinguishment of debt and changes in valuation allowance. The effective tax rates in the third quarters of fiscal years 2025 and 2024 differ from the statutory federal income tax rate of 21% primarily due to a regional mix of income, changes in valuation allowance, impact of global intangible low-taxed income ("GILTI"), research and development ("R&D") credits and nondeductible loss on extinguishment of debt. The Tax Cuts and Jobs Act ("Tax Act") requires R&D costs incurred for tax years beginning after December 31, 2021 to be capitalized and amortized ratably over five or fifteen years for tax purposes, depending on where the research activities are conducted. We have elected to treat GILTI as a period cost and the additional capitalization of R&D costs within GILTI increases our provision for income taxes.
Current wording
We recorded income tax expense of $8.7 million in the first quarter of fiscal year 2026, compared to income tax expense of $3.0 million in the first quarter of fiscal year 2025. The change in our tax provision for the three months ended April 27, 2025, compared to the three months ended April 28, 2024 was primarily due to a regional mix of income and changes in valuation allowance. The effective tax rates in the first quarters of fiscal years 2026 and 2025 differ from the statutory federal income tax rate of 21% primarily due to a regional mix of income, changes in valuation allowance, impact of global intangible low-taxed income ("GILTI") and research and development ("R&D") credits. The Tax Cuts and Jobs Act ("Tax Act") requires R&D costs incurred for tax years beginning after December 31, 2021 to be capitalized and amortized ratably over five or fifteen years for tax purposes, depending on where the research activities are conducted. We have elected to treat GILTI as a period cost and the additional capitalization of R&D costs within GILTI increases our provision for income taxes.
Previous wording
We believe that our cash on hand, cash available from future operations and available borrowing capacity under our Revolving Credit Facility (as defined below) are sufficient to meet liquidity requirements for at least the next 12 months, including funds needed for our material cash requirements. As of October 27, 2024, we had $136.5 million in cash and cash equivalents and $287.2 million of available undrawn borrowing capacity on our Revolving Credit Facility, subject to net leverage limitations and customary conditions precedent, including the accuracy of representations and warranties and the absence of defaults. Over the longer-term, we expect to fund our business using cash flows from operating activities.
Current wording
We believe that our cash on hand, expected cash generation from future operations and available borrowing capacity under the Revolving Credit Facility are sufficient to meet liquidity requirements for at least the next 12 months, including funds needed for our material cash requirements. As of April 27, 2025, we had $156.5 million in cash and cash equivalents and $452.1 million of available undrawn borrowing capacity on our Revolving Credit Facility, subject to net leverage limitations and customary conditions precedent, including the accuracy of representations and warranties and the absence of defaults. Over the longer-term, we expect to fund our business using cash flows from operating activities.
Previous wording
As of October 27, 2024 and January 28, 2024, there was $2.9 million outstanding under the letters of credit, swing line loans and alternative currency sub-facilities outstanding under the Revolving Credit Facility.
Current wording
As of April 27, 2025 and January 26, 2025, there was $2.9 million outstanding under the letters of credit under the Revolving Credit Facility.
Previous wording
A meaningful portion of our capital resources, and the liquidity they represent, are held by our subsidiaries outside of the U.S. As of October 27, 2024, our foreign subsidiaries held $119.1 million of cash and cash equivalents, compared to $104.6 million at January 28, 2024. Our liquidity may be impacted by fluctuating exchange rates. For additional information on exchange rates, see Item 3–Quantitative and Qualitative Disclosures About Market Risk.
Current wording
A meaningful portion of our capital resources, and the liquidity they represent, are held by our subsidiaries outside of the U.S. As of April 27, 2025, our foreign subsidiaries held $136.1 million of cash and cash equivalents, compared to $139.1 million at January 26, 2025. Our liquidity may be impacted by fluctuating exchange rates. For additional information on exchange rates, see Item 3–Quantitative and Qualitative Disclosures About Market Risk.
Previous wording
As of October 27, 2024, the borrowing capacity on the revolving credit facility under the Credit Agreement (the "Revolving Credit Facility") is $500.0 million, of which $162.5 million matured on November 7, 2024 and $337.5 million is scheduled to mature on January 12, 2028 (subject to, in certain circumstances, an earlier springing maturity), and the term loans thereunder (the "Term Loans") are scheduled to mature on January 12, 2028 (subject to, in certain circumstances, an earlier springing maturity).
Current wording
After effectiveness of the Fourth Amendment, the borrowing capacity on the Revolving Credit Facility is $455.0 million, which is scheduled to mature on January 12, 2028 (subject to, in certain circumstances, an earlier springing maturity), and the term loans thereunder (the "Term Loans") are scheduled to mature on January 12, 2028 (subject to, in certain circumstances, an earlier springing maturity).
Previous wording
As of October 27, 2024, we had $622.6 million outstanding under the Term Loans and $210.0 million outstanding under the Revolving Credit Facility, which had available undrawn borrowing capacity of $287.2 million, subject to net leverage limitations and customary conditions precedent, including the accuracy of representations and warranties and the absence of defaults.
Current wording
As of April 27, 2025, the Company had $171.2 million outstanding under the Term Loans and no revolving loans outstanding under the Revolving Credit Facility, which had available undrawn borrowing capacity of $452.1 million, subject to net leverage limitations and customary conditions precedent, including the accuracy of representations and warranties and the absence of defaults.
Previous wording
The 2028 Notes are not currently redeemable. The 2028 Notes may be converted at the option of the holders at the times and under the circumstances and at the conversion rate described in Note 9, Long-Term Debt, to our interim unaudited condensed consolidated financial statements. As of October 27, 2024, one of the conditions allowing holders of the 2028 Notes to convert had been met. The trading price of our common stock remained above 130% of the applicable $20.37 conversion price for at least 20 trading days during the 30 consecutive trading-day period ending on, and including, October 25, 2024 (the last trading day of the quarter ended October 27, 2024), resulting in the right of the holders of the 2028 Notes to convert their 2028 Notes beginning October 28, 2024 through January 24, 2025 (the last trading day of the quarter ending January 26, 2025). If converted, we will settle in cash the aggregate principal amount of the 2028 Notes to be converted, and for the remainder of the conversion obligations in excess of the aggregate principal amount of the notes being converted, we will settle the obligations in either cash, shares of our common stock, or any combination thereof, at our option.
Current wording
The 2028 Notes are not currently redeemable by the Company. The 2028 Notes may be converted at the option of the holders at the times and under the circumstances and at the conversion rate described in Note 8, Long-Term Debt, to our interim unaudited condensed consolidated financial statements. As of April 27, 2025, one of the conditions allowing holders of the 2028 Notes to convert had been met. The trading price of our common stock remained above 130% of the applicable $20.37 conversion price for at least 20 trading days during the 30 consecutive trading-day period ending on, and including, October 25, 2024 (the last trading day of the quarter ended April 27, 2025), resulting in the right of the holders of the 2028 Notes to convert their 2028 Notes beginning April 28, 2025 through July 25, 2025 (the last trading day of the quarter ending July 27, 2025). Should the holders of the 2028 Notes elect to convert some or all of the outstanding 2028 Notes, the Company intends to draw on its Revolving Credit Facility to settle the obligation.
Previous wording
On July 11, 2024 and July 15, 2024, we entered into separate, privately negotiated exchange agreements (the "Exchange Agreements") with certain holders of our 4.00% Convertible Senior Notes due 2028 (the "2028 Notes"). Pursuant to the Exchange Agreements, on July 24, 2024 certain holders exchanged with us approximately $188.1 million in aggregate principal amount of the 2028 Notes held by them for an aggregate of 10,378,431 shares of our common stock, which number of shares was determined over an averaging period that commenced on July 12, 2024. We accounted for these exchange transactions as a partial debt extinguishment and recognized a loss on extinguishment of debt equal to the difference between the fair value of our common stock delivered to certain holders of the 2028 Notes and the carrying value of the outstanding debt, accrued interest and third-party fees related to the Exchange Agreements. In the nine months ended October 27, 2024, in connection with the exchange transactions, we recognized $144.7 million of loss included in "Loss on extinguishment of debt" in the Statements of Operations and $5.5 million of loss resulting from the write-off of deferred financing costs included in "Interest expense" in the Statements of Operations.
Current wording
On July 11, 2024 and July 15, 2024, we entered into separate, privately negotiated exchange agreements (the "Exchange Agreements") with certain holders of the 2028 Notes. Pursuant to the Exchange Agreements, certain holders of the 2028 Notes exchanged with us approximately $188.1 million in aggregate principal amount of 2028 Notes held by them for an aggregate of
Previous wording
We did not repurchase any shares of our common stock under the program in the first nine months of fiscal year 2025 or in the first nine months of fiscal year 2024. As of October 27, 2024, the remaining authorization under the program was $209.4 million. To the extent we repurchase any shares of our common stock under the program in the future, we expect to fund such repurchases from cash on hand and borrowings on our Revolving Credit Facility. We have no obligation to repurchase any shares under the program and may suspend or discontinue it at any time.
Current wording
We did not repurchase any shares of our common stock under the program in the first three months of fiscal year 2026 or in the first three months of fiscal year 2025. As of April 27, 2025, the remaining authorization under the program was $209.4 million. To the extent we repurchase any shares of our common stock under the program in the future, we expect to fund such repurchases from cash on hand and borrowings on our Revolving Credit Facility. We have no obligation to repurchase any shares under the program and may suspend or discontinue it at any time.
Previous wording
Operating cash flows for the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 were favorably impacted by a significant decrease in annual bonus payments, lower payroll costs related to reduced headcount, a decrease in income tax payments, and lower transaction and integration costs primarily related to the Sierra Wireless
Current wording
Operating cash flows for the first three months of fiscal year 2026 compared to the first three months of fiscal year 2025 were favorably impacted by a 21.8% increase in net sales, significantly lower interest payments on debt, lower restructuring payments related to employee termination benefits, and a decrease in income tax payments, and were unfavorably impacted by an increase in annual bonus payments, and an incremental increase in inventory spend.
Previous wording
Net cash provided by or used in investing activities is primarily driven by capital expenditures, purchases and sales of investments, purchases of intangibles, and proceeds from corporate-owned life insurance.
Current wording
Net cash provided by or used in investing activities is primarily driven by capital expenditures, proceeds from sales of property, purchases and sales of investments, purchases of intangibles, and proceeds from or premiums paid for corporate-owned life insurance.
Previous wording
Capital expenditures were $5.2 million for the first nine months of fiscal year 2025, which were lower due to cost-saving initiatives, compared to $27.5 million for the first nine months of fiscal year 2024 as we made investments to update and expand our production capabilities.
Current wording
Capital expenditures were $1.7 million for the first three months of fiscal year 2026, which were higher as we made investments to update our production capabilities, compared to $1.3 million for the first three months of fiscal year 2025 due to cost-saving initiatives.
Previous wording
In the first nine months of fiscal year 2025, we sold investments for proceeds of $2.7 million. In the first nine months of fiscal year 2025, we paid $0.4 million for strategic investments, including investments in companies that are enabling the LoRa® and LoRaWAN® -based ecosystem, compared to $0.9 million for the first nine months of fiscal year 2024.
Current wording
In the first three months of fiscal year 2026, we sold investments for proceeds of $0.5 million compared to $2.7 million for the first three months of fiscal year 2025.
Previous wording
Purchases of intangibles were $5.9 million for the first nine months of fiscal year 2025, which included capitalized development costs and software licenses.
Current wording
Purchases of intangibles were $0.5 million for the first three months of fiscal year 2026, compared to $1.3 million for the first three months of fiscal year 2025, which included capitalized development costs and software licenses.
Previous wording
In the first nine months of fiscal year 2025 and 2024, we received $4.8 million and $2.5 million of proceeds, respectively, from corporate-owned life insurance, which were used to pay deferred compensation distributions.
Current wording
In the first three months of fiscal year 2026, we paid $3.4 million in premiums into our corporate-owned life insurance policy in order to provide substantive coverage for our deferred compensation liability. In the first three months of fiscal year 2025, we received $1.8 million of proceeds from corporate-owned life insurance, which were used to pay deferred compensation distributions.
Previous wording
Net cash provided by or used in financing activities is primarily attributable to proceeds or payments on our Revolving Credit Facility, payments related to deferred financing costs, payments related to employee share-based compensation payroll taxes and proceeds from the exercise of stock options.
Current wording
Net cash provided by or used in financing activities is primarily attributable to payments on our Revolving Credit Facility, payments related to deferred financing costs, payments related to employee share-based compensation payroll taxes and proceeds from the exercise of stock options.
Previous wording
In the first nine months of fiscal year 2025, we made a payment of $5.0 million on our Revolving Credit Facility. In the first nine months of fiscal year 2024, we borrowed $70.0 million on our Revolving Credit Facility.
Current wording
In the first three months of fiscal year 2026, we made a prepayment of $10.0 million on our Term Loans. No such prepayments were made in the first three months of fiscal year 2025.
Previous wording
In the first nine months of fiscal year 2025, we paid $0.8 million for deferred financing costs, compared to $17.8 million for the first nine months of fiscal year 2024.
Current wording
In the first three months of fiscal year 2026, we paid $0.5 million for deferred financing costs, compared to $0.8 million for the first three months of fiscal year 2025.
Previous wording
Our critical accounting estimates are disclosed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in Item 7 of our Annual Report on Form 10-K for the fiscal year ended January 28, 2024. There have been no significant changes to our policies during the nine months ended October 27, 2024.
Current wording
Our critical accounting estimates are disclosed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in Item 7 of our Annual Report on Form 10-K for the fiscal year ended January 26, 2025. There have been no significant changes to our policies during the three months ended April 27, 2025.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
10,378,431 shares of our common stock, which number of shares was determined over an averaging period that commenced on July 12, 2024.
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
79% and 78% during the third quarters of fiscal years 2025 and 2024, respectively. Approximately 63% and 59% of our net sales during the third quarters of fiscal years 2025 and 2024, respectively, were to customers located in the Asia-Pacific region. We are subject to export restrictions and trade regulations, which have limited our ability to sell to certain customers in certain regions.
Previous report — wording carried elsewhere
Comparison of the Nine Months Ended October 27, 2024 and October 29, 2023
Previous report — wording carried elsewhere
The following table summarizes our net sales by major end market:
Previous report — wording carried elsewhere
The following table summarizes our net sales by reportable segment:
Previous report — wording carried elsewhere
The following table summarizes our gross profit and gross margin by reportable segment:
Previous report — wording carried elsewhere
Restructuring decreased by $10.1 million for the first nine months of fiscal year 2025 compared to the same period in fiscal year 2024 primarily due to structural reorganization actions primarily in the prior year period to reduce our workforce as a result of cost-saving measures and internal resource alignment including from the realization of synergies of the Sierra Wireless Acquisition.
Previous report — wording carried elsewhere
Investment Impairments and Credit Loss Reserves, Net
Previous report — wording carried elsewhere
During the first nine months of fiscal year 2025, investment impairments and credit loss reserves, net totaled a loss of $1.1 million due to an other-than-temporary impairment on one of our non-marketable equity investments. During the first nine months of 2024, investment impairments and credit loss reserves, net totaled a loss of $2.3 million due to adjustments to our credit loss reserve for our available-for-sale debt securities.
Previous report — wording carried elsewhere
In the first nine months of fiscal year 2025, we recorded income tax expense of $11.2 million, compared to income tax expense of $53.9 million in the first nine months of fiscal year 2024. The change in our tax provision for the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 was primarily due to a regional mix of income, nondeductible loss on extinguishment of debt and changes in valuation allowance. The effective tax rates in the first nine months of fiscal years 2025 and 2024 differ from the statutory federal income tax rate of 21% primarily due to a regional mix of income, changes in valuation allowance, non-deductibility of goodwill impairment, impact of GILTI, R&D credits and nondeductible loss on extinguishment of debt.
Previous report — wording carried elsewhere
Acquisition, and were unfavorably impacted by an 2.6% decrease in net sales, higher restructuring payments related to employee termination benefits and an incremental increase in inventory spend.